Zebra Technologies (ZBRA) - Get Zebra Technologies (ZBRA) Report shares rose Friday, as Needham raised its price target and kept its buy rating, after the logistics-equipment provider agreed to buy Fetch Robotics.
Fetch is a warehouse automation start-up. Zebra is buying the 95% of Fetch that it doesn’t already own for $290 million.
Needham analyst James Ricchiuti lifted his price target to $580 from $525. Zebra traded at $540.67, up 1.6% at last check.
The acquisition represents part of a “determined initiative to plant a flag in some of the fastest-growing areas of the retail automation and fulfillment center markets,” he wrote in a commentary cited by Bloomberg.
These growth initiatives, “along with ongoing momentum in the core business,” should buoy Zebra stock in the next two years, Ricchiuti said.
In other technology news, IBM (IBM) - Get International Business Machines (IBM) Report said Friday that James Whitehurst was stepping down as president of the technology giant, 14 months after taking the position.
Chief Executive Arvind Krishna said in a statement that Whitehurst would continue as an adviser to him and all of IBM's senior management.
Whitehurst, 53, is the former CEO of Red Hat. Krishna said he "played a pivotal role" in the company's integration.
"In the almost three years since the acquisition was announced, Jim has been instrumental in articulating IBM’s strategy" and "ensuring that IBM and Red Hat work well together," Krishna said.
Meanwhile, chipmaker Broadcom (AVGO) - Get Broadcom Inc. Report settled Federal Trade Commission charges of monopolistic practices.
Specifically, it was charged with requiring customers to source certain components from the company exclusively or almost exclusively. The settlement requires Broadcom to stop that effort.